HIGHLIGHTS-Bank of England's Carney speaks in UK House of Lords - Reuters News
30-Jan-2018 16:04:05
LONDON, Jan 30 (Reuters) - Bank of England Governor Mark Carney appeared on Tuesday before the Economic Affairs Committee in the upper house of Britain's parliament, the House of Lords.
Below is a selection of his comments.
MONETARY POLICY FOCUS INCREASINGLY ON INFLATION
"The important thing with policy now ... is that as the trade-off has been removed, in other words, as slack in the economy has been taken out, we move into a more conventional area for monetary policy, where the focus is increasingly on returning inflation sustainably to target over an appropriate horizon."
UK BUSINESS INVESTMENT NOT UP AS MUCH AS IT SHOULD BE
"Business investment is not up any way to the degree that the world economy growing at over 4 percent with the easiest financial conditions, most supportive financial conditions in over a decade, with the strongest balance sheets in probably 25 years and huge opportunities in an environment of greater certainty."
UK BUSINESSES WAITING TO SEE FUTURE EU TRADE TIES
"It's understandable that our businesses, on the whole ... not all businesses but on average, on the whole, are waiting to see what their future arrangements are going to be with the EU and where the bigger opportunities are going to be outside. That's understandable ... and we conduct policy accordingly."
BOE DOES NOT HAVE A BIAS ON BREXIT
"We don't have a bias, in terms of the outcome. We look at the economic forces ... however the negotiations go ... how it affects the exchange rate, how it affects the supply side of the economy, and how it affects demand."
UK ECONOMY OUTPERFORMANCE VS BOE FORECAST AUG 2016
"If you look at the 1 percent difference between the two, what caused the discrepancy, with hindsight, the first fact is the world economy is much, much stronger and the European is much stronger.
"Second factor is improved financial conditions, relative to the conditions at the time, and our expectations of those financial conditions ... There's a tiny bit one could add as well for the loosening of fiscal policy ... (or) the reduced pace of tightening of fiscal policy would be the most accurate description there."
BOE GOT BROAD ECONOMICS RIGHT ON IMPACT OF BREXIT
"I'm going to reiterate the point about getting the broad economics right, which I think we did. We got the broad economic channels right, and taking what I, even with the wisdom of hindsight, very firmly believe was the right course of action to support the economy and to balance the return of inflation sustainably to target but also to support the economy during a period of some uncertainty."